LesG
Sat Oct 14 17:37:02 CDT 2006
Thank you for your help. I had to read it a couple of times, but it made
sense in the end :-)))
Regards; Les
"Cal Learner-- MVP" wrote:
> In microsoft.public.money, LesG wrote:
>
> >
> >I am trying to enter a Demerger transaction in Money 12. The Help file
> >suggests the following:
> >1.On the Investing menu, click Portfolio .
> >2.In the left pane, click Record a special activity , and then click Record
> >a demerger .
> >3.Follow the instructions on the screen.
> >
> >Except there is only "Transfer an account" and "Record a split", no mention
> >of a demerger. How do I record a demerger?
>
>
http://support.microsoft.com/kb/179585/en-us spinoff (demerger)
> methods for versions or securities where you don't have the spinoff
> (demerger) built-in. However it suggests ReturnOfCapital, and
> TotalReturn (and probably other Portfolio columns) get messed up
> with ROC>
>
> Here is a case example using split:
>
> No money issued other than CIL of fractional share
> Example holding 100 OldCo shares you retain. You bought them
> at $30 per share on 3/3/98. Total basis =$3000.
> This has been ruled to be a tax-free spinoff.
> New shares issued 1 for every 3 originally held.
> Value of OldCo share after spinoff is $27.
> Value of one NewCo share is 18.
>
> Basis to allocate to NewCo shares is
> 3000*(100*27) / ((100*27)+(33.3333*18)) = 2454.55
>
> Basis to allocate to NewCo shares is
> 3000*(33.3333*18) / ((100*27)+(33.3333*18)) = 545.45
>
> Split NewCo to give ratio very close to 3000 to 2454.55 but express
> it a ratio of integers between 1 an 65535. In this case you can
> split the shares 60000 shares for every 49091 shares. This will
> give 122.222 shares. I would tell Money to not retain fractional
> shares. Money will generate a sell for .222 shares which you will
> delete/void. The reason for doing that is it handles the problem
> of there being residual fractional shares that are beyond the
> precision of the displayed value. Remove 22 shares to bring your
> holdings of OldCo to 100. Remove any corresponding entry in your
> tax program come tax time.
>
> Enter a Buy or Add Shares for NewCo of 33.333 shares for a total of
> 545.45. Date the transaction for 3/3/98. Assuming you will not
> retain fractional shares and receive 5.99 in lieu of fractional
> share, Sell .222 shares for a total of 5.99. Adjust the
> transaction if you find later you receive a different CIL amount.
> Memorialize this with a comment in the details of NewCo and OldCo.
>
>
>
>